Trade-Ideas LLC identified Spirit Airlines ( SAVE) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Spirit Airlines as such a stock due to the following factors:

  • SAVE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.0 million.
  • SAVE has traded 431,745 shares today.
  • SAVE is up 3% today.
  • SAVE was down 15.3% yesterday.

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More details on SAVE:

Spirit Airlines, Inc. provides low-fare airline services. As of June 30, 2015, it operated approximately 360 daily flights to 57 destinations in the United States, Caribbean, and Latin America. SAVE has a PE ratio of 14. Currently there are 9 analysts that rate Spirit Airlines a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Spirit Airlines has been 1.1 million shares per day over the past 30 days. Spirit Airlines has a market cap of $3.6 billion and is part of the services sector and transportation industry. The stock has a beta of 2.07 and a short float of 5.2% with 2.14 days to cover. Shares are down 43.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Spirit Airlines as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SAVE has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPIRIT AIRLINES INC has improved earnings per share by 19.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SPIRIT AIRLINES INC increased its bottom line by earning $3.06 versus $2.43 in the prior year. This year, the market expects an improvement in earnings ($4.12 versus $3.06).
  • 35.84% is the gross profit margin for SPIRIT AIRLINES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.85% is above that of the industry average.
  • Net operating cash flow has significantly increased by 141.20% to $129.04 million when compared to the same quarter last year. In addition, SPIRIT AIRLINES INC has also vastly surpassed the industry average cash flow growth rate of 19.97%.

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